Case study: How Asia Cement creates economic value for its stakeholders
Responding to the Taiwan government’s second four-year economic development plan, Asia Cement Corporation (ACC) was founded on March 21, 1957. Asia Cement and its “Skyscraper” brand cement have always occupied the core position in Taiwan’s cement business, generating sustainable value for all Asia Cement’s stakeholders.
This case study is based on the 2021 Sustainability Report by Asia Cement, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Creating, through its business operations, long-term value for employees, shareholders and all its stakeholders, is a top priority for Asia Cement. Tweet This! In order to create economic value for its stakeholders Asia Cement took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Asia Cement has identified;
- How Asia Cement proceeded with stakeholder engagement, and
- What actions were taken by Asia Cement to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Asia Cement identified a range of material issues, such as climate strategy, occupational safety and health, environmental regulations, attracting and retaining talents. Among these, creating economic value for its stakeholders stands out as a key material issue for Asia Cement.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Asia Cement engages with:
| Stakeholder Group | Method of engagement |
| Employee | · Union meetings · Non-routine interview of new employees and online announcement · Non-routine update employee work guidelines · Yearly supervisor interview and performance meeting · Yearly labour-manager meeting · Monthly occupational injury online reporting · Employee plans and non-routine education and training · E-bulletin board · Group ”Far Eastern Magazine” |
| Investors/ Shareholders
| · Annual shareholders’ meeting and investors meeting · Company website investor zone · Public observatory post system · Telephone or email communication feedback · GHG and energy routine filing · Specific area for corporate sustainability in Asia Cement’s website |
| Customers/ Partners
| · Annual customer satisfaction survey · Quality certification · Opions responses on Website and download test report · Routine and non-routine visiting customers · Telephone or email communication and feedback · Routine project meetings · Company website corporate sustainability zone |
| Community/ Local Groups (Including Indigenous People)/ General Public
| · Visiting local groups · Asia Cement service centre · Non-routinely holding or attending local activities · Asia Cement Sustainability Area, LINE, FB, irregular publish information on the public website of mining site information |
| Government Agency
| · Public observatory post system and company website · Official documents · Regulation briefing, seminar or discussion meeting · Information filing · Eco-park and interactions on the official website |
| Suppliers
| · Suppliers assessment · Supplier on-site audit or visit · Telephone or email communication and feedback · Ecome supplier management platform · Supplier opinions survey |
| NGO
| · Asia Cement Sustainability Area, LINE, FB, irregular publish information on the public website of mining site information · Activities and meetings for face-to-face communication · Attending CDP |
| Academic Institute/ Industry
| · Seminar · Industry-academic cooperation project · Routine interchange · Scholarships |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Asia Cement engaged with its stakeholders through a survey.
What actions were taken by Asia Cement to create economic value for its stakeholders?
In its 2021 Sustainability Report Asia Cement reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Asia Cement paid NT$5,172 million for employee salaries and welfare.
- Creating economic value for shareholders
- In 2021, Asia Cement paid NT$11,933 million in dividends.
- Creating economic value for the state
- In 2021, Asia Cement paid NT$4,406 million in income tax.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Asia Cement, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://esg.acc.com.tw/upload/2023/r12_files/2021_Asia_Cement_Sustainability_Report.pdf
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